Xylem Inc (XYL)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,978,000 | 2,268,000 | 1,880,000 | 2,440,000 | 2,484,000 |
| Total assets | US$ in thousands | 16,493,000 | 16,112,000 | 7,952,000 | 8,276,000 | 8,750,000 |
| Debt-to-assets ratio | 0.12 | 0.14 | 0.24 | 0.29 | 0.28 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,978,000K ÷ $16,493,000K
= 0.12
The debt-to-assets ratio of Xylem Inc has exhibited a declining trend over the five-year period from 2020 to 2024, indicating a decreasing reliance on debt to finance its assets. In 2020, the ratio stood at 0.28, slightly increasing to 0.29 in 2021 before dropping to 0.24 in 2022. Subsequently, the ratio experienced a more substantial decrease to 0.14 in 2023 and a further decline to 0.12 in 2024.
A decreasing debt-to-assets ratio generally suggests that the company is becoming more financially stable, as it signifies a lower level of debt relative to the company's total assets. This trend can be seen as positive as it may indicate improved financial health and reduced financial risk for Xylem Inc.
Overall, the declining trend in Xylem Inc's debt-to-assets ratio over the specified period reflects a strategic shift towards a more conservative capital structure and prudent financial management.
Peer comparison
Dec 31, 2024